BILL NUMBER: AB 1464	CHAPTERED  10/10/99

	CHAPTER   597
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 5, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999

INTRODUCED BY   Assembly Members Florez and Cardoza
   (Principal coauthor:  Assembly Member Strom-Martin)

                        FEBRUARY 26, 1999

   An act to add Article 7 (commencing with Section 15373.100) to
Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of, and to repeal
Chapter 1.9 (commencing with Section 65055) of Division 1 of Title 7
of, the Government Code, relating to economic development, and making
an appropriation therefor.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1464, Florez.  Rural development.
   (1) Existing law provides for various rural development programs
in the state.
   This bill would set forth the authority and duties of the Rural
Development Council , within the Trade and Commerce Agency, the
purpose of advocating and recommending programs that foster community
sustainability and community and economic development initiatives in
rural, nonurban, and nonmetropolitan areas of California.  The
council would consist of members with up to 27 votes.  Twenty of
these members would be appointed by the Governor, the Speaker of the
Assembly, and the Senate Committee on Rules, the state director of
the United States Department of Agriculture, Rural Development would
also be urged to sit as a member, and various state and federal
government representatives would be authorized to serve on the
council.  Two Members of the Assembly and 2 Senators would serve in
an advisory capacity .  The council would have specified powers and
duties.
   The bill would create the Rural Development Fund within the State
Treasury to promote and assist in rural development efforts across
the state.
   (2) Existing law required the Director of Planning and Research,
in consultation with the Governor's Interagency Council on Growth
Management and an advisory committee composed of rural landowners and
citizens, to adopt a rural economic growth strategy, on or before
December 31, 1994, to encourage a healthy, self-sustaining rural
economy and society, among other things.
   This bill would repeal these provisions.
   (3) This bill would appropriate $15,000 from the General Fund to
the Trade and Commerce Agency for specified 1999-2000 fiscal year
reimbursement costs for the council.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) According to the United States Bureau of the Census,
California has 2.1 million rural residents, representing 7 percent of
the state's total population.  California has the eighth largest
rural population in the nation, and its rural population is greater
than the total population of 17 states.  Outside of California's four
major metropolitan areas, the majority of the state's geography is
rural.
   (b) Rural areas of California offer more open space, more natural
recreational facilities, less congestion and pollution, and
closer-knit communities than urban areas.
   (c) While rural areas of California have a lower cost of living
than urban areas, residents of rural areas also have lower incomes,
and are more likely to be unemployed than are residents of urban
areas.
   (d) In general, the population of California's rural counties
contains a much larger percentage of both children ages 14 years and
younger and adults ages 45 years and older than do the populations of
urban counties.  Consequently, rural areas have more elderly
residents and children than do urban areas.
   (e) California is a relatively wealthy state, yet most of its
wealth is concentrated in its urbanized areas.  The average per
capita income of California's rural counties in 1989 was fifteen
thousand four hundred thirty dollars ($15,430), only 94 percent of
the state's per capita income of sixteen thousand four hundred nine
dollars ($16,409).
   (f) Unemployment rates in nonurban and nonmetropolitan areas of
California are significantly higher than the state average based on
1990 United States Census data.  These rates, averaged across
regions, mask even higher unemployment rates at local levels and
during winter months when unemployment is highest.  In addition, the
gap between metropolitan and nonmetropolitan unemployment has
remained stable in recent years.
   (g) Based on the average wage per job in 1990, those who are able
to find employment in rural areas earn significantly less than those
in similar positions in urban areas.
   (h) Despite these grim statistics, based on a low labor force
participation rate there is strong potential for economic growth in
rural areas.
   (i) The Legislature recognizes the need for the state to create a
California Rural Development Council to advocate and recommend
programs that foster community sustainability and economic
development initiatives in rural, nonurban, and nonmetropolitan areas
of California.
  SEC. 2.  (a) It is the intent of the Legislature in enacting this
act to provide statutory authority for the Rural Development Council,
which exists within the Trade and Commerce Agency for the following
purposes:
   (1) Improving communication between state and federal agencies and
rural areas, and providing a forum for the discussion of issues
related to rural development.
   (2) Coordinating the efforts of state and federal agencies in
working with local and tribal governments and the private sector in
matters related to rural development.
   (3) Recommending policies, strategies, and programs to address the
needs of rural California.
   (4) Providing advice to California state agencies on issues
affecting rural California.
   (b) It is further the intent of the Legislature that the Rural
Development Council shall be established outside of state government
as a separate, private nonprofit corporation upon meeting the
following criteria:
   (1) The council becomes a member of the United States Department
of Agriculture National Rural Development Partnership.
   (2) The council conducts a feasibility analysis and,
notwithstanding Section 7550.5 of the Government Code, submits a
report to the Legislature no later than January 1, 2003, that
outlines a process for incorporating as a private nonprofit
corporation, demonstrating fiscal and legal accountability,
organizational capacity, leadership, and staffing, and support of
partners and stakeholders.
   (3) The council has secured funding in support of rural program
development from various sources, including, but not limited to,
federal, state, and local government, or private entities.
  SEC. 3.  Article 7 (commencing with Section 15373.100) is added to
Chapter 2.5 of Part 6.7 of Division 3 of Title 2 of the Government
Code, to read:

      Article 7.  Rural Development Council

   15373.100  (a) The Rural Development Council, within the Trade and
Commerce Agency, shall have the authority and duties specified in
this article.  The council shall advocate and recommend programs that
foster community sustainability and community and economic
development initiatives in rural, nonurban, and nonmetropolitan areas
of California.
   (b) The mission of the council shall be to provide a voice for the
needs and interests of rural residents and businesses in a
comprehensive and collaborative manner.  Further, it shall be the
mission of the council to support and encourage local decisionmaking
efforts to improve the quality of life in rural areas.
   (c) During the first five years after enactment of this article,
the council shall minimally consider addressing the following issues
and concerns of rural areas:
   (1) Methods of increasing available financing for small and
medium-sized businesses, agricultural enterprises, residential
development, essential public facilities, and infrastructure.
   (2) Encouraging the development of new domestic and foreign
marketing opportunities for manufacturing, service, and agricultural
enterprises.
   (3) An analysis of the impact that the lack of health care has on
the development and expansion of businesses, senior citizens, and
children.
   (4) Examples of successful programs that enhance the viability of
agricultural enterprises located in the agricultural and urban
interface.
   15373.101.  For purposes of this article, "rural development"
means economic and community development activities that address the
specific needs of rural, nonurban, and nonmetropolitan areas.  Rural
development shall include, but not be limited to, issues and concerns
of agriculture, manufacturing, and other business enterprises;
health care; housing; infrastructure; law enforcement; fire safety;
public health; and education.
   15373.102.  The council shall represent a wide range of rural
interests and geographic areas from across the state.  In making
appointments pursuant to Sections 15373.103, 15373.104, and
15373.105, the appointing authorities shall, to the greatest extent
possible, appoint members who represent a fair geographic
distribution of the state.
   15373.103.  (a) The Governor shall appoint 10 members to the
council, each of whom shall have expertise in one or more of the
following areas as it relates to rural, nonurban, or nonmetropolitan
communities:
   (1) Small business.
   (2) Agriculture, which may include crop production or range
management.
   (3) Manufacturing.
   (4) Law enforcement.
   (5) Native American affairs.
   (6) Forestry.
   (7) Fisheries.
   (8) Water.
   (9) Land use planning.
   (10)  Local government.
   (b) At least four members appointed by the Governor shall
represent a nonprofit organization from a rural, nonurban, or
nonmetropolitan community.
   15373.104.  (a) The Speaker of the Assembly shall appoint five
public members to the council, each of whom shall have expertise in
one of the following areas as it relates to rural, nonurban, or
nonmetropolitan communities:
   (1) Banking or lending.
   (2) Human services or social services.
   (3) Economic development.
   (4) Transportation.
   (5) Health.
   (b) No public member appointed by the Speaker of the Assembly
shall have expertise in the same area as any other appointed member.
At least two members appointed by the Speaker of the Assembly shall
represent a nonprofit organization from a rural, nonurban, or
nonmetropolitan community.
   (c) The Speaker of the Assembly shall also appoint two Members of
the Assembly from different political parties as nonvoting advisory
members of the council.
   15373.105.  (a) The Senate Committee on Rules shall appoint five
public members to the council, each of whom shall have expertise in
one of the following areas as it relates to rural, nonurban, or
nonmetropolitan communities:
   (1) Education.
   (2) Farmworker labor.
   (3) The environment or natural resources.
   (4) Housing.
   (5) Telecommunications or information technology.
   (b) No public member appointed by the Senate Committee on Rules
shall have expertise in the same area as any other appointed member.
At least two members appointed by the Senate Committee on Rules
shall represent a nonprofit organization from a rural, nonurban, or
nonmetropolitan community.
   (c) The Senate Committee on Rules shall also appoint two Members
of the Senate from different political parties as nonvoting advisory
members of the council.
   15373.106.  (a) The state director of the United States Department
of Agriculture, Rural Development, shall be urged to sit as a
federal government representative to the council.  The state director
shall be a voting member of the council.
   (b) (1) Members of the council representing state government may
include the following:
   (A) The executive director of the Governor's Rural Development
Advisory Committee.
   (B) The Secretary of Trade and Commerce.
   (C) The Director of Housing and Community Development.
   (D) The Governor's Rural Health Policy Council adviser.
   (E) The Superintendent of Public Instruction.
   (F) The Secretary of Agriculture.
   (G) The Secretary of Business, Transportation and Housing.
   (H) Any other representatives of state government, to be appointed
by the Governor as he or she deems necessary.
   (2) These state government members may have no more than three
votes collectively, regardless of how many serve.
   (c) (1) Members of the council representing the federal government
may include, but need not be limited to, the following:
   (A) The Region IX representative for the federal Department of
Education.
   (B) The Region IX representative for the federal Economic
Development Agency.
   (C) The Region IX representative for the federal Department of
Housing and Urban Development.
   (D) The Region IX representative for the Federal Emergency
Management Agency.
   (E) The Region IX representative for the federal Department of
Health and Human Services.
   (F) The Region IX representative for the Environmental Protection
Agency.
   (G) The Region IX representative for the United States Forest
Service.
   (H) Any other federal government representatives who wish to
participate.
   (2) These federal government members may have no more than three
votes collectively, regardless of how many serve.
   (d) The council may add ex officio, nonvoting members as it deems
appropriate.
   15373.107.  Members appointed by the Governor pursuant to Section
15373.103, and by the Speaker of the Assembly and the Senate
Committee on Rules may represent the private sector, local
government, state government, the federal government, academia,
nonprofit organizations, Indian tribes, trade or labor associations,
community groups, or any other group that has provided the member
with an expertise in his or her particular area.
   15373.108.  (a) All members of the council shall serve for
two-year terms, except that five of the initial members appointed by
the Governor, two of the initial members appointed by the Speaker of
the Assembly, and three of the initial members appointed by the
Senate Committee on Rules shall each serve a one-year term.
   (b) Legislative members shall serve for two-year terms.
   (c) There is no limitation on the number of terms that may be
served by any member.
   (d) Members may only be removed from the council by their
appointing authority for reasonable cause.  For purposes of this
article, reasonable cause shall include, but is not limited to,
conviction of a felony, physical inability to carry out the
requirements and responsibilities of the office, neglect of duty,
misconduct, or malfeasance in office.
   15373.109.  The Secretary of Trade and Commerce shall serve as
chairperson of the council.  The council shall annually select a vice
chairperson from among its members for a one-year term.  There is no
limitation on the number of terms that may be served by a vice
chair.
   15373.110.  (a) (1) The council shall meet at least biannually and
at any additional time that the chairperson or a majority of the
council deems necessary  to fulfill the function and operations of
the council.
   (2) Meetings shall rotate to different locations across the state.
  Pursuant to Article 9 (commencing with Section 11120) of Chapter 1
of Part 1, all meetings shall be open to the public and shall include
provisions for public comment.
   (3) (A) Council members shall be compensated for appropriate and
necessary travel expenses, consistent with state guidelines for
reimbursed travel expenses for nonrepresented excluded employees.
   (B) It is the intent of the Legislature that an annual
appropriation of thirty thousand dollars ($30,000) be made for
reimbursement costs under this paragraph.
   (b) A quorum shall be 11 of the 21 voting members appointed
pursuant to Sections 15373.103, 15373.104, and 15373.105.  For the
initial meeting and the two subsequent meetings a quorum of the
council need not be present.
   (c) The council shall adopt bylaws outlining its operations and
procedures within six months of their first meeting.
   (d) The first meeting of the council shall be called by March 1,
2000.  The Secretary of Trade and Commerce, as chairperson, shall
convene the initial meeting.  Subsequent meetings shall be at times
and locations agreed upon by a majority of the voting members of the
council.
   15373.111.  The council shall do all of the following:
   (a) Focus attention on, and increase public awareness of, the
opportunities and needs of Californians living and working in rural,
nonurban, and nonmetropolitan communities.
   (b) Advocate for rural California by proposing solutions to
challenges facing rural, nonurban, and nonmetropolitan communities
across this state.
   (c) Strengthen community sustainability and growth in rural,
nonurban, and nonmetropolitan California through increased
community-based wealth creation, expanded economic opportunity, and
improved quality of life.
   (d) Stimulate rural development innovation and foster the transfer
of information to, from, and within rural, nonurban, and
nonmetropolitan California.
   (e) Encourage and support continuity, coordination, and
cooperation among national, state, multicommunity, and local rural
development initiatives and service providers.
   (f) Ensure that Californians in rural, nonurban, and
nonmetropolitan areas are afforded the opportunity to determine this
state's rural development agenda for their communities.
   (g) Provide a voice to all segments of this state's rural,
nonurban, and nonmetropolitan communities on rural issues.
   (h) Serve as an advisory board to the Governor, state agencies,
and the Legislature on rural development issues.
   (i) Establish an information clearinghouse on rural challenges and
needs, development services, model initiatives, available resources,
and service providers.
   (j) Foster community-based development initiatives through
multicommunity partnerships.
   (k) Support strategic planning and research for, and evaluation
of, rural development initiatives and service providers.
   (l) Bring together in a comprehensive and understandable way the
fragmented community development resources that rural communities
must rely on to meet their residents' needs.
   (m) Serve as California's state rural development council within
the meaning of the Presidential Initiative on Rural America and the
United States Department of Agriculture's National Rural Development
Partnership by providing inventories, reports, assessments, and
implementation plans as appropriate, and working together with the
federal government to achieve the National Rural Development
Partnerships Goals of collaboration and effective utilization of
rural development resources in order to identify, resolve, and
eliminate intergovernmental and interagency impediments and other
barriers that hinder effective rural development efforts.
   (n) Engage in any other appropriate activities necessary to
fulfill the purposes, duties, and powers of the council, which may
include, but are not limited to, all of the following:
   (1) Obtaining advisers.
   (2) Creating task forces composed of noncouncil members.
   (3) Holding, hosting, planning, or attending conferences on rural
development issues.
   (4) Creating and managing an Internet home page.
   (5) Producing a newsletter.
   (6) Issuing reports, recommendations, or other communications as
deemed necessary by the council.
   (7) Making recommendations to the Legislature, Governor, and
federal government on issues related to rural California.
   (8) Hiring employees.
   15373.112.  The council may apply for and receive gifts, grants,
contributions, and other funds from the state government, local
government, federal government, private agencies, corporate entities,
affiliated associations, agricultural boards, agricultural advisory
boards, agricultural marketing programs, and individuals and may,
consistent with state law, contract with public and private groups to
conduct its business.
   15373.113.  Notwithstanding Section 7550.5, on or before November
15 of each year, the Secretary of Trade and Commerce, as chairperson
of the council, shall transmit to the Governor and the Legislature a
report that includes a summary of the council's activities,
recommendations for future rural development action, and an
accounting of the source and use of funds disbursed during the
previous fiscal year.
   15373.114.  (a) The Rural Development Fund is hereby created in
the State Treasury to promote and assist in rural development efforts
across the state.
   (b) Money deposited in the fund shall include any monetary gifts,
grants, and donations, and reimbursements of expenses, including, but
not limited to, moneys from the United States Department of
Agriculture.
  SEC. 4.  Chapter 1.9 (commencing with Section 65055) of Division 1
of Title 7 of the Government Code is repealed.
  SEC. 5.  The sum of fifteen thousand dollars ($15,000) is hereby
appropriated from the General Fund to the Trade and Commerce Agency
for the 1999-2000 fiscal year reimbursement costs specified in
paragraph (3) of subdivision (a) of Section 15373.110 of the
Government Code, as added by Section 3 of this act.
